Institut für Weltwirtschaft (IfW), Kiel >
Kieler Arbeitspapiere, IfW >
Please use this identifier to cite or link to this item:
| || |
|Title:||Monetary persistence, imperfect competition, and staggering complementarities |
Snower, Dennis J.
|Issue Date:||2005 |
|Series/Report no.:||Kieler Arbeitspapiere 1257|
|Abstract:||This paper explores the influence of wage and price staggering on monetary persistence. First, our analysis indicates that the degree of monetary persistence generated by wage vis-à-vis price staggering depends on the relative competitiveness of the labor and product markets. We show that the conventional wisdom that wage staggering can generate more persistence than price staggering does not necessarily hold. Second, this paper discusses weaknesses of the contract multiplier, which is generally used to compare persistence, and proposes the measure quantitative persistence. Third, we show that, for plausible parameter values, wage and price staggering are highly complementary in generating monetary persistence. Thus beyond understanding how they work in isolation, it is important to explore their interactions.|
|Document Type:||Working Paper|
|Appears in Collections:||Kieler Arbeitspapiere, IfW|
Publikationen von Forscherinnen und Forschern des IfW
Download bibliographical data as:
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.